No, the claim that the government pays hospitals 120% for services provided to undocumented immigrants is false and has no factual basis. This myth is often circulated through misleading political rhetoric, especially during government shutdown debates. In reality, the U.S. healthcare system's policies for immigrants are far more limited.
Here are the facts regarding hospital reimbursement for emergency care provided to undocumented immigrants:
- Emergency care only. By federal law, hospitals that receive Medicare funding must provide emergency medical treatment to anyone, regardless of their immigration status or ability to pay.
- Emergency Medicaid reimbursement. To help cover the costs of this mandatory emergency care, hospitals can receive reimbursement through Emergency Medicaid. This program only covers emergency services, not routine care, prescriptions, or long-term treatment.
- Limited reimbursement. Reimbursement for this emergency care is often capped and covers only a fraction of the actual costs, not an overpayment of 120%.
- Minimal portion of Medicaid spending. Emergency Medicaid spending for non-citizens accounts for less than 1% of total Medicaid spending.
- Ineligible for most programs. Undocumented immigrants are not eligible for federal health programs like standard Medicaid, Medicare, or the Affordable Care Act (ACA) marketplace subsidies.
The idea of a 120% reimbursement is unsubstantiated and appears to be entirely fabricated.
